India: Domestic HRC Trade Sentiments Remain Dull Amid Limited Deals

This week domestic HRC prices remained steady on the backdrop of limited trade activities and lackluster demand prevailing in domestic market.

Though in the beginning of this week major Indian steel mills have announced hike in flat steel prices by INR 750-1000/MT in June deliveries owing to higher raw material cost.However the increased offers are yet to be passed into the traders segment. Limited deals were reported this weeks at firm offers.

Currently HRC (2.5-8mm, IS2062) prices in traders market is around INR 41,000-41,500/MT (ex-Mumbai), INR 41,200/MT (ex-Delhi) and INR 44,500/MT(ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Currently CRC (0.9mm,IS 513) in traders market is around INR 46,000/MT(ex-Mumbai), INR 45,500/MT (ex-Delhi) and INR 49,000/MT (ex-Chennai).Prices mentioned above are basic and extra GST@ 18% will be applicable.

Few markets like Ahmadabad and Chennai witnessed upsurge in prices post announcement of price hike by major Indian mills for June deliveries.However in other regions effective increase in prices have not yet passed on to traders market

A trader based in Ludhiana commented that," Hike in prices in month of June have not yet passed on to traders market.Traders have less clarity on current price hike due to Eid holidays and slowdown of buying activities in traders market.Thus in few trade markets flat steel prices continued to remain steady".

Few traders are of opinion that current price hike is difficult to absorb in domestic market over sluggish trades. Hence Indian mills may provide some price support in form of discounts or rebates.

Meanwhile demand in domestic market less likely to improve owing to slowdown in construction and infrastructure activities and weaker growth in auto sector. Also approaching monsoon season along with cheaper imports may keep HRC price under pressure in domestic market.